Why are gas prices so high? Of all the people Thursday’s CNN Newsroom host Poppy Harlow could have invited to give an answer to that question, she decided on former Obama Chairman of the Council of Economic Advisers, Jason Furman. Furman was there to inform viewers that White House talking points about Vladimir Putin being to blame are actually correct.
Harlow began by wondering about another Democratic talking point, “I’d like your take as an economist and as someone has worked in the Obama Administration on a number of Democrats both in Congress and officials in the White House pointing a finger at companies saying price gouging.”
After reporting oil executives will be meeting at the White House next week, she asked, “As an economist, what do you make of this White House argument that corporate greed is making the situation worse? Is there merit to it or is it politics?”
Furman didn’t directly answer the price gouging question, saying it was a matter of debate, but ultimately blamed Putin instead, “I think right now the main thing going on with oil is an increase in the global price of oil, that’s the main thing I see. It’s the, it’s President Putin, not the oil companies.”
To back up his assertion, Furman gave a lesson in supply and demand, “But I don't think that the White House is arguing that greed as a whole is causing inflation, that’s why they’ve said they want The Fed, their number one policy recommendation, is that The Fed needs to bring down inflation. It really is demand is very, very high, supply isn't high enough. When that happens, prices rise. The only way to solve it is more supply or less demand.”
If only there was a way to make up for that supply.
This segment was sponsored by Carvana.
Here is a transcript for the June 16 show:
CNN Newsroom with Poppy Harlow and Jim Sciutto
6/16/2022
10:24 AM ET
POPPY HARLOW: I’d like your take as an economist and as someone has worked in the Obama Administration on a number of Democrats both in Congress and officials in the White House pointing a finger at companies saying price gouging. And we just learned from our Matt Egan, the White House is inviting the big oil execs next week to meet. This is after a White House official called their profits quote “outrageous” and President Biden, a few weeks ago, said “Exxon is making more money than God.”
As an economist, what do you make of this White House argument that corporate greed is making the situation worse? Is there merit to it or is it politics?
JASON FURMAN: Look, I think that you can look at individual industries. The White House has talked about meat packing, shipping, and now it’s talking about oil and you could debate, you know, in each one of those industries, was there gouging, you know, what should be done about it?
I think right now the main thing going on with oil is an increase in the global price of oil, that’s—
HARLOW: Right.
FURMAN: -- the main thing I see. It’s the, it’s President Putin, not the oil companies. But I don't think that the White House is arguing that greed as a whole is causing inflation, that’s why they’ve said they want The Fed, their number one policy recommendation, is that The Fed needs to bring down inflation. It really is demand is very, very high, supply isn't high enough. When that happens, prices rise. The only way to solve it is more supply or less demand.
